The invention discloses a pipeline leakage simulation test device and test method. The test device comprises a transparent model box, transparent soil, a simulated pipeline, a conduit, an oil pump, afuel tank, a dial gauge, a dial gauge mounting bracket and a soil pressure gauge. The transparent soil is prepared based on the refractive index of the model box. Before testing, all parts are connected and the positions of hole-included plugging boards arranged at the two sides of the model box are adjusted; soil filling and simulated pipeline mounting are carried out based on the positions of hole-included plugging boards; the soil pressure gauge is installed during the primary soil filling process; and then the dial gauge is installed after soil filling, so that the ground surface settlement is observed conveniently.